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March 2018

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Billabong International Limited announced it has reached conditional agreement to acquire the progressive apparel brand RVCA.

RVCA, based in California, was founded in 2000 as an art and design-driven brand focusing on a diverse range of activities that both represent and inspire youth.

Billabong International Limited chief executive officer Derek O'Neill said RVCA was one of southern California's most exciting emerging brands.

“RVCA is not defined by any single sport or culture. It represents a community of culturally aware youth and is inspired by a diverse range of interests, each of which is underpinned by an original, highly creative design element,” said Mr O'Neill.

“It is a brand that has developed a very strong presence in the United States, particularly in southern California, on the strength of its fashion-forward ranges in categories including art-driven t-shirts, denim, wovens, boardshorts and, more recently, its girls' line.”

The bulk of RVCA's revenue is currently generated in the US, while its expansion into other key markets including Australia and Europe is in its infancy.

Brand founder Pat Tenore said he and his existing management team will continue to drive the development and growth of the brand.

“RVCA's key strength has been its ability to differentiate itself through creative design,” said Mr Tenore.

“By joining with Billabong we can retain our focus on our creative strengths, while leveraging the distribution and supply chain infrastructure and support of the Billabong group.”

It is anticipated RVCA will contribute approximately 2% of Billabong group revenue and will be EPS neutral in the 2010-11 financial year. The purchase price, which is not considered material, remains undisclosed.

The asset acquisition agreement is subject to usual conditions precedent. Billabong and RVCA anticipate the conditions will be satisfied shortly.